Cityon Systems India Ltd Management Discussions

Ended 31st March 2025

The Company is engaged in trading activities. The year under review has continued to pose significant challenges, which have adversely impacted the overall performance of the Company. Despite the losses incurred, management remains confident about the long-term viability and growth potential of the business.

2. Financial Performance

During the financial year 2024 25, the Company recorded a total revenue of 7,51,740, compared to 240 in the previous year, representing tremendous growth. However, the

Company incurred a net loss of 10,96,322, as against a loss of 7,62,823 in FY 2023 24.

3. Risks and Concerns

The capital market industry in which the Company operates is highly regulated and exposed to various risks, including technological obsolescence, market volatility, regulatory changes, and potential legal liabilities. The Company continuously monitors these risks and aligns its investment and operational strategies to mitigate their impact and ensure compliance with applicable laws.

4. Industry Structure and Developments

The outlook for FY 2024 25 remained cautiously optimistic, as inflationary pressures stabilize and consumer sentiment recovers. The governments continued focus on infrastructure, digitization, and manufacturing is expected to create new opportunities in the medium to long term.

5. Opportunities and Strengths

The Company is equipped with Well-designed controls that streamline processes and operations. The Company is searching for new avenues. Your company continues to focus on the diversification its business activities. Although business opportunities are available, additional resources continue to be constrained for opting for opportunities.

6. Internal Control Systems

The Company has adequate internal control systems commensurate with its size and nature of business. These controls ensure efficient use and protection of resources, compliance with applicable laws and regulations, and accuracy in

financial reporting.

7. Human Resources

The Company values its human capital and continues to invest in employee training, motivation, and development. As of 31st March 2025, Attrition levels remained within acceptable limits despite industry-wide talent challenges.

8. Risk Management

The Board of Directors affirms that the Company has implemented a comprehensive and effective risk management system in line with industry standards and regulatory requirements. Robust processes are in place to identify, assess, mitigate, and monitor risks across all operational areas. A standardized risk matrix is used to evaluate risks based on their potential impact and likelihood, allowing for proper prioritization and resource allocation. Regular reviews and audits ensure the continued relevance and

effectiveness of the framework. The

Companys risk appetite is clearly defined and aligned with its strategic goals, with a

strong emphasis on fostering a culture of

4. Industry Structure and Developments

The outlook for FY 2024 25 remained cautiously optimistic, as inflationary

pressures stabilize and consumer sentiment recovers. The governments continued focus on infrastructure, digitization, and manufacturing is expected to create new opportunities in the medium to long term.

5. Opportunities and Strengths

The Company is equipped with Well-designed controls that streamline processes and operations. The Company is searching for new avenues. Your company continues to focus on the diversification its business activities. Although business opportunities are available, additional resources continue to be constrained for opting for opportunities.

6. Internal Control Systems

The Company has adequate internal control systems commensurate with its size and nature of business. These controls ensure efficient use and protection of resources, compliance with applicable laws and regulations, and accuracy in

financial reporting.

7. Human Resources

The Company values its human capital and continues to invest in employee training, motivation, and development. As of 31st March 2025, Attrition levels remained within acceptable limits despite industry-wide talent challenges.

8. Risk Management

The Board of Directors affirms that the Company has implemented a comprehensive and effective risk management system in line with industry standards and regulatory requirements. Robust processes are in place to identify, assess, mitigate, and monitor risks across all operational areas. A standardized risk matrix is used to evaluate risks based on their potential impact and likelihood, allowing for proper prioritization and resource allocation. Regular reviews and audits ensure the continued relevance and effectiveness of the framework. The

Companys risk appetite is clearly defined and aligned with its strategic goals, with a strong emphasis on fostering a culture of risk awareness and continuous improvement to protect the interests of all stakeholders.

Cautionary Statement

The statements made in this report describe the companys objectives and projections that may be forward looking statement within the meaning of applicable laws and regulations. The actual result might differ materially from those expressed or implied depending on the economic conditions, government policies and other incidental factors which are beyond the control of the company. The company is not under any obligation to publicly amend, modify or revise any forward-looking statements on the basis of any subsequent developments, information or events. risk awareness and continuous improvement to protect the interests of all stakeholders.

Cautionary Statement

The statements made in this report describe the companys objectives and projections that may be forward looking statement within the meaning of applicable laws and regulations. The actual result might differ materially from those expressed or implied depending on the economic conditions, government policies and other incidental factors which are beyond the control of the company. The company is not under any obligation to publicly amend, modify or revise any forward-looking statements on the basis of any subsequent developments, information or events.

risk awareness and continuous improvement to protect the interests of all stakeholders.

Cautionary Statement

The statements made in this report describe the companys objectives and projections that may be forward looking statement within the meaning of applicable laws and regulations. The actual result might differ materially from those expressed or implied depending on the economic conditions, government policies and other incidental factors which are beyond the control of the company. The company is not under any obligation to publicly amend, modify or revise any forward-looking statements on the basis of any subsequent developments, information or events.

4. Industry Structure and Developments

The outlook for FY 2024 25 remained cautiously optimistic, as inflationary pressures stabilize and consumer sentiment recovers. The governments continued focus on infrastructure, digitization, and manufacturing is expected to create new opportunities in the medium to long term.

5. Opportunities and Strengths

The Company is equipped with Well-designed controls that streamline processes and operations. The Company is searching for new avenues. Your company continues to focus on the diversification its business activities. Although business opportunities are available, additional resources continue to be constrained for opting for opportunities.

6. Internal Control Systems

The Company has adequate internal control systems commensurate with its size and nature of business. These controls ensure efficient use and protection of resources, compliance with applicable laws and regulations, and accuracy in financial reporting.

7. Human Resources

The Company values its human capital and continues to invest in employee training, motivation, and development. As of 31st March 2025, Attrition levels remained within acceptable limits despite industry-wide talent challenges.

8. Risk Management

The Board of Directors affirms that the Company has implemented a comprehensive and effective risk management system in line with industry standards and regulatory requirements. Robust processes are in place to identify, assess, mitigate, and monitor risks across all operational areas. A standardized risk matrix is used to evaluate risks based on their potential impact and likelihood, allowing for proper prioritization and resource allocation. Regular reviews and audits ensure the continued relevance and effectiveness of the framework. The

Companys risk appetite is clearly defined and aligned with its strategic goals, with a strong emphasis on fostering a culture of risk awareness and continuous improvement to protect the interests of all stakeholders.

Cautionary Statement

The statements made in this report describe the companys objectives and projections that may be forward looking statement within the meaning of applicable laws and regulations. The actual result might differ materially from those expressed or implied depending on the economic conditions, government policies and other incidental factors which are beyond the control of the company. The company is not under any obligation to publicly amend, modify or revise any forward-looking statements on the basis of any subsequent developments, information or events.